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You have a choice between two bonds. Bond A makes yearly payments and has a maturity of 20
years and a coupon rate of 10%. Bond B has a maturity of 15 years and makes semi-annual
payments at a coupon rate of 11.3%. The nominal value of both bonds is R10 000 and the yield-
to-maturity is 11.2% i. What is the value of Bond A? [5 marks] ii. What is the value of Bond B?
[5 marks] iii. Which bond is selling at

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